MILLIONS of pensioners are going without adequate food and heating because they are so cash-strapped, says a report.

Yet the majority have untapped property wealth they could release to improve their lifestyles, it says.

The study for insurers LV= shows 32 per cent of retired people now live on less than the minimum wage.

It says as many as 4.8 million older people have to sacrifice both essential and non-essential items to make ends meet.

This includes necessities like heat and food and one in 20 admit they cannot afford to buy birthday and Christmas presents for their family and friends.

A quarter of pensioners struggle to pay their utility bills and experts warn that, with people living longer and retiring on smaller pension pots, funding retirement poses a growing challenge.

Yet 68 per cent have capital locked up in property with 83 per cent of over-65s owning their home and having an average of £235,750 in equity, the study says.

Sacrifices pensioners make include holidays abroad, given up by 25 per cent, a new car, no longer possible say 16 per cent, and dining out, sacrificed by 15 per cent.

Despite their financial struggles however, only seven per cent of over-65s have unlocked their capital in property to help fund their retirement.

Some 17 per cent incorrectly thought that by using equity release they would pass on debt to their heirs, while 24 per cent mistakenly thought that their equity release borrowing could exceed the value of their property.

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Age UK's Caroline Abrahams

It's deeply concerning that so many older people are struggling in retirement, often going without life's essentials

John Perks, managing director of Retirement Solutions at LV=

John Perks, managing director of Retirement Solutions at LV=, said: "It's deeply concerning that so many older people are struggling in retirement, often going without life's essentials. But it doesn't have to be this way.

"There are many options available and using untapped housing wealth to supplement other incomes is a route worth considering, as it allows you to free up capital.

"It is unfortunate that misconceptions about the way retirees can use their property to plug an income shortfall persist as, in the right circumstances, equity release can be used to help afford retirees a better, more comfortable standard of living.

"However, we would always recommend that someone seeks advice from a specialist before taking out equity release."

Caroline Abrahams, charity director at Age UK, said: "Around 1.6 million older people live in poverty and struggle to afford even the basics, with many more surviving on a very low income.

"Worryingly, vital benefits are still failing to reach some of the poorest and most vulnerable older people in our society.

"We want any older person who is worried about money to contact us to find out if they could be entitled to some extra help."